1. Simple versus compound interest Aa Aa Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Zoe deposited $900 in a savings account at her bank. Her account will earn an annual simple interest rate of 8.6%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 13 years? $984.06 $1,906.20 $2,630.45 $177.40 Now, assume that Zoe's savings institution modifies the terms of her account and agrees to pay 8.6% in compound interest on her $900 balance. All other things being equal, how much money will Zoe have in her account in 13 years? 0 $977.40 $1,906.20 O $226.22 O $2,630.45 Suppose Zoe had deposited another $900 into a savings account at a second bank at the same time. The second bank also pays a nominal (or stated) interest rate of 8.6% but with quarterly compounding. Keeping everything else constant, how much money will Zoe have in her account at this bank in 13 years? $177.40 $254.09 $979.93 $2,720.43